PIA gets another Rs5.6 billion bailout package

The government has approved another bailout package worth Rs5.6 billion for the national airline.

The decision was approved by the Economic Coordination Committee on Tuesday. Finance Minister Asad Umar chaired the meeting.

This is the second financial support for PIA which has been approved by the PTI government. In November 2018, the government provided it with a package worth Rs17.2 billion.

During the meeting, the civil aviation officials briefed the meeting about the operational and financial situation of the national flag carrier. They demanded Rs15 billion for bringing PIA out of its financial crisis. PIA has failed to pay outstanding dues of Rs17.3 billion to Pakistan State Oil because of the financial crunch.

The ECC after reviewing the whole situation approved Rs5.6 billion additional guarantee for PIA. The funds will be utilised for the maintenance of engines and acquisition of spare parts.

The management was asked to prepare a revival and business plan as early as possible.

Last year, a report was presented in the Supreme Court, in which it was disclosed that the PIA’s accumulated losses have surged to Rs 356 billion, while overall liabilities are Rs406 billion against the assets of only Rs111 billion.

The ECC approved measures for revival of the cotton crop in the county and stressed the importance of the research and development for cotton in collaboration with China.